The first ever court appeal against the MSC legislation has found in favour of the taxman, who is calling the ruling “cracking” for protecting up to £9million.Such is the total sum expected to be safeguarded in respect of all limited companies set up under the scheme before the court, which was run by Costelloe Business Services (CBS).Accused of being a MSC that encouraged the avoidance of £378,000 in tax (including NICs) by encouraging contractors into limited companies, CBS gave just … [Read more...]
PSC – A Ltd. Shelf Life
No need to set an alarm this morning – this news certainly woke me up……………………..SDC and PSC are words synonymous within the contractor, temp and the wider Recruitment Process Outsourcing (RPO) sector.But, HMRC, via Companies House have today published a game changer and it’s huge!In short, Companies House are viewing, SDC and PSC as one and the same. This will be known as “People with Significant Control” (PSC).The upshot is simple, the exodus to people setting up Ltd Companies, … [Read more...]
Most limited company contractors to end up within IR35 rules
Barring exceptional cases, contractors working for the public sector through their own limited companies are now likely to be subject to a long-standing but controversial tax regime aimed at tackling tax avoidance, say employment tax experts.This is due to proposed changes around the tax regime known as IR35. The proposed new rules, announced last month in Budget 2016, are designed to crack down on the use of limited companies, also known as personal service companies (PSCs). Contractors … [Read more...]